Except for the Tuesday rollout of Westpac's new online-only refinance rate, which unveiled a 5.84% p.a. (5.85% p.a. comparison rate*) rate for owner occupiers, adjustments in the mortgage market this week have been focused on fixed rate reductions.
ANZ and Macquarie are the largest mover in the fixed mortgage space, joined by major customer-owned banks Newcastle Permanent, Greater Bank, and Beyond Bank.
Most lenders have now finished passing on the latest RBA rate cut on variable home loans - now it's back on the horse as the market awaits the RBA's monetary policy meeting in early April.
With these recent changes, most fixed and variable rate mortgages are now sitting between 5% and 6% p.a., although some products are still hovering above the 7% p.a. mark.
Should the Reserve Bank deliver another cut at its next meeting on 31 March-1 April, especially with the new labour data suggesting a loosening jobs market, we may see lower variable rates than fixed.
However, the RBA has already doused hopes that a quick follow up will materialise.
Even the markets are pricing in only a 10% chance that we will see the cash rate dropping to 3.85% next month.
As we await the RBA's next decision, here's a snapshot of the latest fixed rate changes from some of the country's major lenders.
ANZ drops fixed rate mortgages
Australia's fourth largest lender ANZ has dropped the rates on its mortgages with fixed term of one year.
The bank shed 25 basis points from Residential Fixed with max loan-to-value ratio (LVR) of 80%, bringing the rate down to 5.89% p.a. (6.66% p.a. *comparison rate).
Customers with less than 20% deposit, on the other hand, can lock in 6.34% p.a. (6.88% p.a. *comparison rate).
Investment home loans fixed for one year also got a 15 basis point cut, leaving the rates down to 6.09% p.a. (7.21% p.a. *comparison rate) for 80% LVR and 6.54% p.a. (7.44% p.a. *comparison rate) for 90% LVR.
Macquarie cuts fixed home loans up to 20 bps
Macquarie is back on the cutting board, applying a widespread reductions to its fixed home loan rates for both owner occupier and investors.
The bank's headline fixed rate is 5.39% p.a. (5.82% p.a. comparison rate*) available through the 2-year Basic Fixed Owner Occupied with 70% LVR and paying principal and interest (P&I).
For residential mortgage with offset account, the lowest fixed rate available is 5.39% p.a. (6.00% p.a. comparison rate*) with up to 70% LVR.
Meanwhile, here are the other updated Macquarie OO fixed rate home loans with 80% LVR and paying both principal and interest.
| Product | New rate | Comparison rate |
|---|---|---|
| Basic Fixed 1 Year | 5.59% p.a. (-20 bps) | 5.93% p.a.* |
| Basic Fixed 2 Years | 5.49% p.a. (-16 bps) | 5.88% p.a.* |
| Basic Fixed 3 Years | 5.49% p.a. (-16 bps) | 5.84% p.a. |
| Basic Fixed 4 Years | 5.69% p.a. (-10 bps) | 5.87% p.a.* |
| Basic Fixed 5 Years | 5.69% p.a. (-10 bps) | 5.86% p.a.* |
| Offset Fixed 1 Year | 5.59% p.a. (-20 bps) | 6.16% p.a.* |
| Offset Fixed 2 Years | 5.49% p.a. (-16 bps) | 6.10% p.a.* |
| Offset Fixed 3 Years | 5.49% p.a. (-16 bps) | 6.07% p.a.* |
| Offset Fixed 4 Years | 5.69% p.a. (-10 bps) | 6.10% p.a.* |
| Offset Fixed 5 Years | 5.69% p.a. (-10 bps) | 6.08% p.a.* |
For investors, here are the new fixed rates available from the bank.
| Product | New rate | Comparison rate |
|---|---|---|
| Basic Fixed Inv 1 Year | 5.75% p.a. (-20 bps) | 6.18% p.a.* |
| Basic Fixed Inv 2 Years | 5.65% p.a. (-14 bps) | 6.12% p.a.* |
| Basic Fixed Inv 3 Years | 5.65% p.a. (-14 bps) | 6.07% p.a. |
| Basic Fixed Inv 4 Years | 5.85% p.a. (-10 bps) | 6.10% p.a.* |
| Basic Fixed Inv 5 Years | 5.85% p.a. (-10 bps) | 6.07% p.a.* |
| Offset Fixed Inv 1 Year | 5.75% p.a. (-20 bps) | 6.40% p.a.* |
| Offset Fixed Inv 2 Years | 5.65% p.a. (-14 bps) | 6.34% p.a.* |
| Offset Fixed Inv 3 Years | 5.65% p.a. (-14 bps) | 6.29% p.a.* |
| Offset Fixed Inv 4 Years | 5.85% p.a. (-10 bps) | 6.32% p.a.* |
| Offset Fixed Inv 5 Years | 5.85% p.a. (-10 bps) | 6.30% p.a.* |
Newcastle Permanent slashes fixed rate mortgages
Customer-owned bank Newcastle Permanent joined in on the rate-cutting action this week, shedding up to 20 basis points on its fixed rate home loans.
Borrowers seeking the lowest fixed rate from the bank have to lock in their repayments for two years to get 5.59% p.a. (7.74% p.a. comparison rate*) special offer rate.
Newcastle Permanent's fixed rate home loan has no ongoing fees and allows additional repayments of up to $25,000 per year.
In addition, customers applying online and are approved can also get up to $3,000 cashback currently offered by the bank, which is among the few that still have ongoing cashback deals.
See Also: Home loan cashback offers and deals
On the other hand, the special offer rate for the Premium Plus Package is 5.49% p.a. (7.46% p.a. comparison rate*) for a two-year fixed term.
Here are the other updated rates of Newcastle Permanent's Premium Plus Package Fixed residential home loans (P&I).
| Product | New rate | Comparison rate |
|---|---|---|
| Premium Plus Package 1 Yr | 5.79% p.a. (-20 bps) | 7.70% p.a.* |
| Premium Plus Package 1 Yr Special Offer | 5.69% p.a. (-20 bps) | 7.69% p.a.* |
| Premium Plus Package 2 Yrs | 5.59% p.a. (-20 bps) | 7.48% p.a.* |
| Premium Plus Package 2 Yrs Special Offer | 5.49% p.a. (-20 bps) | 7.46% p.a.* |
Greater Bank cuts fixed home loans
Moving in chorus with its sister bank, Greater Bank also applied up to 20 basis point cuts across its home loan products with fixed term of one and two years.
The lowest fixed rate is available through the bank's Great Rate home loan at 5.49% p.a. (7.19% p.a. comparison rate*).
Great Rate Home Loan has no ongoing fees and comes with flexible repayments options, inducing a split loan feature.
Borrowers seeking a fixed rate mortgage with a 100% offset account can lock in 5.49% p.a. (7.37% p.a. comparison rate*) for two years through the bank's Ultimate Rate Home Loan product.
See the other updated fixed P&I home loan rates from the bank below:
|
Product |
New rate |
Comparison rate |
|
Great Rate Fixed 1 Yr |
5.69% p.a. (-20 bps) |
7.42% p.a.* |
|
Great Rate Fixed 2 Yrs |
5.49% p.a. (-20 bps) |
7.19% p.a.* |
|
Ultimate Rate Fixed 1 Yr |
5.69% p.a. (-20 bps) |
7.57% p.a.* |
|
Ultimate Rate Fixed 1 Yr |
5.49% p.a. (-20 bps) |
7.37% p.a.* |
Other fixed rate cuts this week
- Beyond Bank lowers OO and INV fixed home loans by up to 85 bps
- IMB cuts residential and investment home loans by as much as 30 bps
- Easy Fin Services cuts fixed home loan rates by 15 bps
And a variable rate cut this week
Member-owned Queensland Country Bank applied a 15 basis point cut to its Special Variable Package Rate home loans for owner occupiers and investors with maximum LVR of 80% to 95%.
The P&I rate requiring 80% LVR is now 5.74% p.a. (6.10% p.a. comparison rate*).
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.79% p.a. | 5.83% p.a. | $2,931 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.74% p.a. | 5.65% p.a. | $2,915 | Principal & Interest | Variable | $0 | $0 | 80% | 100% owned by Commbank |
| Promoted | Disclosure | |||||||||
5.84% p.a. | 6.08% p.a. | $2,947 | Principal & Interest | Variable | $250 | $250 | 60% | 100% offset |
| Promoted | Disclosure |
Image by Breno Assis on Unsplash
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